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HomeMy WebLinkAbout07/10/2007 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session July 10, 2007 — 4:00 p.m. I. ROLL CALL Present: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner II. CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to Council Member Gardner's questions, Public Works Director Badum indicated that they are pleased that the bid in Item 9 (Coast Highway Medians) is so low and that the contractor has done work in the City previously. He noted that the project may be delayed, however, because the specified King Palm Trees are hard to acquire so the project may need to be revised. Regarding Item 11 (Newport Terrace Landfill Gas Collection and Control System), City Attorney Clauson reported that this item is the settlement that arose from the dispute of who was responsible for maintaining the wells. In response to Council Member Henn's questions, City Manager Bludau confirmed that the total cost of the study in Item 15 (JWA Departure Pattern Study) is $88,000 and that the City will be paying for the study. Regarding Item 16 (Two Groups to Raise Funds for OASIS Senior Center and Marine III Memorial), City Attorney Clauson stated that the committees do not have to have tax exempt status since they will be raising money on behalf of City projects; however, the City is a tax exempt entity. Further, the committees will not exercise any dominium over the moneys collected. In response to Council Member Curry's questions relative to Item 15, City Manager Bludau indicated that it is not anticipated that the report will support changing the take -off patterns. City Attorney Clauson added that the information will be mainly used to answer the public's questions. 2. REVIEW OF PROGRAMS AND GRANTS DEALING WITH WATER QUALITY. It was the consensus of Council to continue this item to a future study session. 3. DRAFT STRATEGIC PLAN FOR FISCAL AND ECONOMIC STABILITY. 1100 -20071 Assistant City Manager Wood noted that this is the City's first economic development plan and that there are consulting resources available that will give the City information relative to small tenant spaces in older commercial areas and retail market information. She reviewed the staff report, noting that they believe the plan can be implemented with current staffing. She reviewed the consultant costs and indicated that, if the plan is supported, a budget amendment would be brought back to Council. In response to Council questions, Assistant City Manager Wood explained how staffing will be handled when one of the key staff members leaves and confirmed that some of the tasks could be done in -house if the City had enough planning staff resources. Council Member Volume 68 — Page 206 City of Newport Beach Study Session Minutes July 10, 2007 Henn noted that the plan purposely parallels the General Plan. It was the consensus of Council to move forward with the Strategic Plan and have staff bring back a budget amendment. 4. COMPRESSED NATURAL GAS STATION /ALTERNATIVE FUEL VEHICLES. General Services Director Harmon utilized a PowerPoint presentation to highlight the mandates set by the Air Quality Management District (AQMD), the types of fuel heavy duty vehicles use and the benefits of Compressed Natural Gas (CNG), the number of City vehicles that are subject to the mandates, the City's proposed alternative fuel program and costs involved, the benefits of and costs involved in a public/private fueling station partnership with Clean Energy, the modifications needed to the fleet maintenance shop, the number of vehicles needing replacement, which local agencies have CNG stations and which use alternative- fueled vehicles, possible funding opportunities, and the timeline for design and development of the program. General Services Director Harmon reported that the AQMD mandates do not apply to safety vehicles. He pointed out that 60 other City vehicles could utilize alternative fuels. He reported that the fueling station could cost $1 million; however, under the public/private partnership with Clean Energy, the City would be responsible for $100,000, be given a preferential fuel price for City vehicles, and receive royalty payments. He stated that Clean Energy estimates that 200,000 gallons /year will be sold from the City's station. He indicated that Costa Mesa has expressed interest in fueling their heavy equipment in the City. He emphasized that the program is also a proactive step in reducing air pollution and increasing environmental responsibility. General Services Director Harmon discussed the possibility of piping the City's oil field gas down Superior Avenue during its repaving project in order to bring it into the fueling station. He pointed out that, currently, the only hook -up comes from the Southern California Gas Company. He noted that permits could take 8 to 12 months and the City might not receive equipment until one year after it is purchased. Public Works Director Badum reported that it would cost about $300,000 to run the 4" gas line in the Superior Avenue project. In response to Council questions, General Services Director Harmon reported that the diesel trucks get about 3 or 4 miles /gallon, a natural gas front loader costs about $230,000 and a diesel refuse front loader costs about $160,000, the School District uses the Fountain Valley station, and the closest stations to the City are in Irvine and Huntington Beach. He reported that the closest agency that could maintain large CNG equipment is in Irvine, but expressed concern about the downtime that may occur. He confirmed that the fleet would be reduced by about 50 percent if the City outsourced refuse services. Mayor Rosansky clarified that the City has been disposing of its methane gas by selling it to Hoag Hospital at a discounted rate; however, buying gas from both the City and the Gas Company lowers their priority with the Gas Company which could be a problem during an emergency. He emphasized that the City may need to shut down the oil fields until it finds another way of disposing the gas. Council Member Webb noted that the revenue from the sale of methane gas is only between $70,000 1year to $80,000/year. In response to Council questions, Charles Alshuler, Clean Energy, indicated that they could look into using the City's surplus natural gas, as long as Clean Energy is able to tap into the City's gas line. He confirmed that the gas would need to meet specifications to power a vehicle. He further explained how equivalent pricing is calculated between CNG and regular fuel, and that he calculated CNG to be about $1.95 /gallon. Regarding the safety of Volume 58 - Page 207 City of Newport Beach Study Session Minutes July 10, 2007 the tanks, he discussed the rating of the tanks and that there is minimal gallons of gas in the tanks. He reported that a tank only holds about 300 gallons. General Services Director Harmon confirmed for City Manager Bludau that the CNG facility would not conflict with the household hazardous waste facility since they will be located at different areas of the Yard. He pointed out that the City has staff that can maintain the safety vehicles and some that have limited CNG vehicle maintenance training. He reported on what changes will need to be made to the shop in order to maintain CNG vehicles. He concurred that the shop modifications are still necessary regardless if the City does not conduct its own refuse collection. He indicated that he could ask whether it were possible to convert only half the shop. He explained what types of trucks the General Services Department uses and noted that the City has not purchased a refuse truck since 2002. Council requested more information about partnerships with other cities, how to reduce costs, outsourcing vehicle maintenance, options for the City's methane gas, what it would take to make the gas vehicle - compatible, and if there are other providers for the fueling station. General Services Director Harmon indicated that Clean Energy is the only company they found that builds and maintains fueling stations and handles billing. However, they could put together a Request For Proposal (RFP). Mayor Rosansky requested that the City also explore whether the City is providing refuse service in a cost efficient manner for the level of service provided. Council Member Henn indicated that he could provide the Mayor with a study he prepared. Council Member Gardner believed that the City needs a CNG station and asked staff to come back with answers to Council's questions so the process can move forward. General Services Director Harmon stated that the City may want to move forward with the fueling station and the pipeline installation on Superior Avenue, and conduct a separate discussion about the equipment and shop modifications. III. PUBLIC COMMENTS - None. IV. ADJOURNMENT - 5:29 p.m The agenda for the Study Session was posted on July 5, 2007, at 8:50 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. R � I FA AW 10210010 City Clerk RAW ►, -I j Recording Secretary Volume 58 - Page 208